Autonomous trucking company TuSimple is laying off most of its U.S. staff and winding down its operations in the country.
The company is reducing its U.S. workforce by about 150 employees, which is 75% of its U.S. staff and 19% of its global workforce, TuSimple said in a Monday (Dec. 4) filing with the Securities and Exchange Commission (SEC).
“The company anticipates that the remaining U.S. workforce will focus on winding down the company’s U.S. operations, including through sales of U.S. assets, and assisting with the company’s strategic shift to the Asia-Pacific region,” TuSimple said in the filing.
The company will retain about 700 full-time employees worldwide, according to the filing.
TuSimple was founded in San Diego in 2015 to use autonomous driving technology to improve the safety and efficiency of the trucking industry, according to the company’s website for investors.
The firm developed an autonomous driving system designed for heavy-duty trucks and established a long-range perception system and its nationwide Autonomous Freight Network, the website said.
The company has faced safety concerns and government scrutiny, however, The Wall Street Journal (WSJ) reported Tuesday (Dec. 5).
Valued at $8.5 billion when it went public in 2021, TuSimple is currently valued at $229 million, according to the report.
The firm has faced investigations into whether it improperly financed and transferred technology to a Chinese startup, the report said. The FBI, SEC and Committee on Foreign Investment in the U.S. (Cfius) have opened investigations into this issue.
TuSimple was also investigated by the Federal Motor Carrier Safety Administration (FMCSA) after an accident involving a truck fitted with its self-driving technology, WSJ reported in August 2022.
When TuSimple announced its plans to go public in 2021, it said a reliable autonomous solution at scale would help shippers guarantee freight capacity and allocate their driver supply to customer-facing first- and last-mile operations.
The company disclosed details of a broad restructuring plan in December 2022 and May 2023, according to TuSimple’s Monday filing with the SEC.
“The company also previously disclosed its strategy to pause freight revenue operations in the U.S. and the evaluation of strategic alternatives for its U.S. business, including a sale of the U.S. operations or a sale of certain U.S. assets, as the company aims to shift its focus to the Asia-Pacific region,” TuSimple said in the filing.
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